NAB may keep British banks

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John Stewart has given the strongest indication yet that NAB intends to keep Yorkshire Bank and Clydesdale Bank.Photo: Ken Irwin

National Australia Bank chief executive John Stewart yesterday
dismissed recent speculation about the possible sale of its four
banks in Britain as the work of investment bankers "trying to drum
up work".

But while he said no decision had been made, he gave the
strongest indication yet that the nation's largest lender was
likely to retain Yorkshire Bank and Clydesdale Bank.

Mr Stewart, speaking before the formal launch of NAB's $250
million development in Melbourne's Docklands, said: "Everything is
on the agenda but in terms of likelihood it is very unlikely that
we would sell the banks on the mainland. It is not out of the
question, but it is unlikely.

"At this point of time it is probably unlikely that we would
sell the Irish banks - Northern Bank and National Irish Bank - but
if you are looking at the degrees of things it is a bit more
likely."

He added that there was no "grand announcement" planned to
coincide with the full-year results on November 10.

His comments followed the latest speculation in the British
press, with Lazard, the investment bank reviewing the banks, having
been reported as sending a memorandum to possible buyers saying the
Irish banks were to be sold as a pair.

The dominant feature of National @ Docklands (N@D) is an atrium
rising eight storeys to a steel-framed glass ceiling. The wings are
crossed by gangways.

NAB Australia chief executive Ahmed Fahour said the building was
symbolic of the bank's efforts to rebuild its structure and culture
and to support the integration of its two core businesses, retail
banking and wealth management.